v3.25.2
Note 15 - Segments
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segments

NOTE 15 SEGMENTS

We manage our operations in two reportable segments - pharmaceutical and diagnostics. The following is a brief description of our reportable segments and a description of business activities conducted by our corporate operations.

Pharmaceutical — this segment consists of our operations in Chile, Mexico, Ireland, Israel, Spain, Brazil, and Uruguay, Rayaldee product sales, NGENLA royalty and profit-sharing sales, and our pharmaceutical research and development.

Diagnostics — this segment primarily consists of clinical laboratory operations through BioReference and our point-of-care operations.

To provide greater transparency into the factors affecting segment profitability, the Company discloses significant expense categories for each reportable segment in the tables below. Our CODM is Phillip Frost, M.D., our Chairman and Chief Executive Officer. Dr. Frost reviews our operating results and operating plans and makes resource allocation decisions on a Company-wide or aggregate basis. Our CODM may discuss and review financial information at the Pharmaceutical and Diagnostic operating segment level. The CODM uses segment information to evaluate segment profitability, monitor trends, identify risks and opportunities, allocate resources (such as capital expenditures and R&D funding), and set strategic priorities (including new product development and market expansion). These expenses, along with segment revenue, are used to calculate gross margin, a key profitability metric that the CODM uses to assess segment performance. In computing operating income, none of the following items have been included: interest expense, other non-operating income and expenses, and income taxes. Segment operating income (expense) is total revenue, less cost of revenue and operating expenses relative to each segment. There are no significant inter-segment sales, nor is there any inter-segment allocation of interest expense or income taxes.

The following are descriptions of the significant expense categories included in the segment reporting tables below:

For the pharmaceutical segment:

•
Cost of product revenue: Represents the direct costs of manufacturing and distributing pharmaceutical products, including raw materials, manufacturing overhead, and distribution costs.
•
Selling, general and administrative (SG&A) expenses: Encompasses operating expenses such as salaries, marketing and advertising costs, and administrative overhead.
•
Research and development (R&D) expenses: Incurred in developing new pharmaceutical products, including costs related to research, clinical trials, and regulatory approvals.
•
Intangible asset amortization: Represents the periodic expensing of acquired intangible assets, such as patents and licenses.
•
Depreciation: Relates to the depreciation of property, plant, and equipment used in the segment's operations.

For the diagnostics segment:

•
Cost of service revenue: Includes the direct costs of providing diagnostic testing services, such as laboratory supplies, equipment costs, and labor costs.
•
Selling, general and administrative (SG&A) expenses: Similar to the Pharmaceuticals segment, includes salaries, marketing expenses, and administrative overhead.
•
Research and development (R&D) expenses: Incurred in developing new diagnostic products and services, including costs related to research, clinical studies, regulatory submissions, and new technology development.
•
Intangible asset amortization: Represents the periodic expensing of acquired intangible assets, such as intellectual property and customer relationships.
•
Depreciation: Relates to the depreciation of property, plant, and equipment used in the segment's operations.

The tables below present information about reported segments, unallocated corporate operations as well as geographic information for the three and six months ended June 30, 2025 and 2024:

 

 

 

For the three months ended June 30,

 

 

For the six months ended June 30,

 

(In thousands)

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Revenue from services:

 

 

 

 

 

 

 

 

 

 

 

 

Pharmaceutical

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Diagnostics

 

 

101,101

 

 

 

129,395

 

 

 

203,945

 

 

 

256,286

 

Corporate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

$

101,101

 

 

$

129,395

 

 

$

203,945

 

 

$

256,286

 

Revenue from products:

 

 

 

 

 

 

 

 

 

 

 

 

Pharmaceutical

 

$

40,743

 

 

$

40,485

 

 

$

75,585

 

 

$

78,532

 

Diagnostics

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Corporate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

$

40,743

 

 

$

40,485

 

 

$

75,585

 

 

$

78,532

 

Revenue from transfer of intellectual property and other:

 

 

 

 

 

 

 

 

 

 

 

 

Pharmaceutical

 

$

14,963

 

 

$

12,306

 

 

$

27,229

 

 

$

21,054

 

Diagnostics

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Corporate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

$

14,963

 

 

$

12,306

 

 

$

27,229

 

 

$

21,054

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Pharmaceutical

 

$

25,022

 

 

$

23,455

 

 

$

47,836

 

 

$

45,199

 

Diagnostics

 

 

82,383

 

 

 

107,078

 

 

 

166,901

 

 

 

216,952

 

Corporate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

$

107,405

 

 

$

130,533

 

 

$

214,737

 

 

$

262,151

 

Gross margin:

 

 

 

 

 

 

 

 

 

 

 

 

Pharmaceutical

 

$

30,684

 

 

$

29,336

 

 

$

54,977

 

 

$

54,387

 

Diagnostics

 

 

18,718

 

 

 

22,317

 

 

 

37,044

 

 

 

39,334

 

Corporate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

$

49,402

 

 

$

51,653

 

 

$

92,021

 

 

$

93,721

 

Selling, general and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

Pharmaceutical

 

$

13,197

 

 

$

14,062

 

 

$

25,907

 

 

$

29,103

 

Diagnostics

 

 

33,369

 

 

 

44,502

 

 

 

71,325

 

 

 

90,262

 

Corporate

 

 

13,031

 

 

 

10,257

 

 

 

21,451

 

 

 

19,623

 

 

$

59,597

 

 

$

68,821

 

 

$

118,683

 

 

$

138,988

 

Research and development:

 

 

 

 

 

 

 

 

 

 

 

 

Pharmaceutical

 

$

29,778

 

 

$

23,686

 

 

$

60,016

 

 

$

44,933

 

Diagnostics

 

 

484

 

 

 

386

 

 

 

1,022

 

 

 

1,052

 

Corporate

 

 

80

 

 

 

10

 

 

 

145

 

 

 

35

 

 

$

30,342

 

 

$

24,082

 

 

$

61,183

 

 

$

46,020

 

Amortization of intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

Pharmaceutical

 

$

16,415

 

 

$

16,408

 

 

$

32,525

 

 

$

32,851

 

Diagnostics

 

 

3,029

 

 

 

4,012

 

 

 

6,779

 

 

 

9,005

 

Corporate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

$

19,444

 

 

$

20,420

 

 

$

39,304

 

 

$

41,856

 

Segment operating loss:

 

 

 

 

 

 

 

 

 

 

 

 

Pharmaceutical

 

$

(28,706

)

 

$

(24,820

)

 

$

(63,470

)

 

$

(52,500

)

Diagnostics

 

 

(18,164

)

 

 

(26,583

)

 

 

(42,082

)

 

 

(60,985

)

Corporate

 

 

(13,111

)

 

 

(10,267

)

 

 

(21,596

)

 

 

(19,658

)

 

$

(59,981

)

 

$

(61,670

)

 

$

(127,148

)

 

$

(133,143

)

 

 

 

For the three months ended June 30,

 

 

For the six months ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Depreciation and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

Pharmaceutical

 

$

18,142

 

 

$

17,905

 

 

$

35,930

 

 

$

35,856

 

Diagnostics

 

 

4,885

 

 

 

6,250

 

 

 

10,584

 

 

 

14,118

 

Corporate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

$

23,027

 

 

$

24,155

 

 

$

46,514

 

 

$

49,974

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

114,884

 

 

$

141,717

 

 

$

231,091

 

 

$

277,759

 

Ireland

 

 

11,742

 

 

 

9,842

 

 

 

17,221

 

 

 

19,065

 

Chile

 

 

16,003

 

 

 

17,602

 

 

 

30,535

 

 

 

32,491

 

Spain

 

 

6,724

 

 

 

5,872

 

 

 

13,164

 

 

 

11,531

 

Israel

 

 

139

 

 

 

441

 

 

 

212

 

 

 

601

 

Mexico

 

 

6,297

 

 

 

5,908

 

 

 

12,526

 

 

 

12,991

 

Other

 

 

1,018

 

 

 

804

 

 

 

2,010

 

 

 

1,434

 

 

$

156,807

 

 

$

182,186

 

 

$

306,759

 

 

$

355,872

 

 

Segment assets for the two reportable segments in which we operate are shown in the following tables. Corporate assets are principally cash and are not allocated to an operating segment. Identifiable assets by segment are those assets that are used in our operations in each segment. The accounting policies of the segments are the same as those described in Note 3 summary of significant accounting policies.

 

 

 

June 30,

 

 

December 31,

 

(In thousands)

 

2025

 

 

2024

 

Assets:

 

 

 

 

 

 

Pharmaceutical

 

$

1,343,706

 

 

$

1,359,270

 

Diagnostics

 

 

476,218

 

 

 

493,898

 

Corporate

 

 

153,065

 

 

 

347,044

 

 

$

1,972,989

 

 

$

2,200,212

 

Goodwill:

 

 

 

 

 

 

Pharmaceutical

 

$

320,743

 

 

$

309,545

 

Diagnostics

 

 

163,442

 

 

 

219,707

 

 

$

484,185

 

 

$

529,252

 

 

No customer represented more than 10% of our total consolidated revenue for the six months ended June 30, 2025 and 2024. As of June 30, 2025 and December 31, 2024, no customer represented more than 10% of our accounts receivable balance.